Rex International Holding Limited 195 NOTES TO THE FINANCIAL STATEMENTS 2 MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED) 2.17 Segment reporting An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating segments’ operating results are reviewed regularly by the Group’s Executive Chairman, the Chief Executive Officer (“CEO”) and senior management to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available. Segment results that are reported to the Group’s Executive Chairman, CEO and senior management include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company’s headquarters), head office expenses, and tax assets and liabilities. Segment capital expenditure is the total cost incurred during the year to acquire oil and gas properties, exploration and evaluation assets, property, plant and equipment, and intangible assets other than goodwill. 3 EXPLORATION AND EVALUATION ASSETS Group Note 2025 2024 US$’000 US$’000 Cost At 1 January 95,415 95,368 Additions 15,907 17,027 Derecognition (2,409) – Transferred to oil and gas properties 4 (4,082) (4,343) Translation differences 16,955 (12,637) At 31 December 121,786 95,415 Accumulated impairment losses At 1 January 60,512 69,585 Impairment of capitalised exploration expenditure 24 10,893 378 Derecognition (2,409) – Translation differences 10,803 (9,451) At 31 December 79,799 60,512 Carrying amount at 31 December 41,987 34,903 Exploration and evaluation (“E&E”) costs incurred were in respect of E&E of hydrocarbons in Norway, Oman and Germany (2024: Norway, Oman and Benin).
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